Increases highway fund via fuel tax

For a period of five years from June 18, 1952, fifty percent of the specific tax paid on oils used in agriculture and aviation may be refunded.
Refund requires submission of proof:
1. Sworn affidavit from producer and two disinterested persons or an affidavit from president of a registered producers association/federation.
2. For aviation oils: sworn certificate proving actual use in aviation.
Refunds not applicable to foreign citizens or corporations if their countries do not provide equivalent refunds for Philippine users.

A specific tax of one peso per metric ton is levied on diesel fuel oil and similar fuel oils with comparable generating power.

Revenues from increased taxes on oils and fuels are exclusively allocated to the Highway Special Fund.
Funds are designated for:
- Amortization of loans or bonds for construction, reconstruction, or improvement of highways and bridges.
- Liquidation of toll bridges constructed from revolving funds authorized under existing laws, upon recommendation and approval.

Cities and municipalities may impose an additional tax up to 25% over the specified rates on manufactured oils sold or distributed within their jurisdiction.
Previously imposed municipal taxes on certain fuels are ratified and declared valid.
Each municipal board or council determines the method of collection of the additional tax.

Revenues from the additional municipal tax accrue to the road and bridge funds of the respective political subdivision.
Refund of 25% of the specific tax for oils used by miners or forest concessionaires requires proof of actual use under defined conditions.
Construction of new roads requires approval from the Commissioner of Public Highways to ensure integration into the Philippine Highway System.

The provisions of this Act take effect immediately upon approval on June 14, 1956.